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Should the government bail out people in forclosure?
Should the government be responsible for bailing out people in forclosure?
I’d have to agree with jimahl. If you go on a case by case basis, you can determine if people were attempting to live beyond their means, or if they were a victim of predatory lending practices.
I think it has to be done on a case by case basis. I think it has to be a shared burden between the lenders and the borrowers. The burden cannot fall on the borrowers alone. It is the banking industry that lobbied for the de-regulation that allowed subprime mortgages in the first place. Then many engaged in predatory lending practices that entrapped people who did not understand what they were getting into.
No easy answer.
No, except in the cases where PMI has been purchased via government backing.
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